On April 24, 2012, the compensation committee of the board of directors (the
"Committee") of AVI BioPharma, Inc. (the "Company") approved 2011
performance-based bonuses to our executive officers. The aggregate bonus amounts
set forth below were calculated based on achievement of the Company's
pre-established corporate goals at the 60% level multiplied by each executive's
target bonus for fiscal year 2011 (prorated for the number of days such
executive was employed by the Company in fiscal 2011). The Committee provided
Mr. Garabedian, the Company's President and Chief Executive Officer, with the
choice to receive his entire 2011 performance-based bonus solely in the form of
equity awards, both stock options and restricted stock units ("RSUs"). For
Dr. Kaye, the Company's Senior Vice President and Chief Medical Officer, half of
the aggregate bonus amount is payable in cash and half is payable in the form of
an equity award of either stock options or RSUs, at Dr. Kaye's election.
Historically, performance-based bonuses have been paid to the Company's
executives solely in cash; however, due to the Company's focus on preserving its
cash resources, the Committee determined that the 2011 performance-based bonuses
would be paid in half cash and half equity, with the exception of Mr. Garabedian
who elected to receive no cash consideration and instead received his entire
2011 performance-based bonus solely in equity.

(1) Each of Mr. Garabedian and Dr. Kaye elected to receive half of the 2011
performance-based bonus in the form of a stock option grant. The number of
shares subject to each stock option grant was determined by the following
formula: the product of (a) one-half of the executive's 2011
performance-based bonus, divided by $0.90, the closing price of the
Company's common stock on The NASDAQ Global Market on April 24, 2012 (the
"Closing Price"), multiplied by (b) three (rounded down to the nearest
whole share). The options granted to each executive have an exercise price
equal to the Closing Price and a term of ten years. One-fourth of the
shares underlying each stock option grant will vest on the first
anniversary of the grant date, and 1/48th of the shares underlying each
stock option grant will vest on each monthly anniversary thereafter, such
that the shares underlying each stock option grant will be fully vested on
the fourth anniversary of the grant date, so long as the executive
continues to provide services to the Company through each date.

(2) The number of shares subject to Mr. Garabedian's RSU grant was determined
by the following formula: one-half of Mr. Garabedian's 2011
performance-based bonus, divided by the Closing Price (rounded down to the
nearest whole share). Half of the shares underlying the RSU will vest on
the first anniversary of the grant date, one-fourth of the shares
underlying the RSU will vest on the 18-month anniversary of the grant date
and the remaining one-fourth of the shares underlying the RSU will vest on
the second anniversary of the grant date, so long as Mr. Garabedian
continues to provide services to the Company through each date.

Additional details regarding the Company's policy of granting bonuses to its
executive officers will be provided in the Company's Amendment No. 1 to its
Annual Report on Form 10-K, which will be filed on or before April 30, 2012.

In connection with the Committee's approval of the 2011 performance-based
bonuses, the Committee approved a form of restricted stock unit award agreement
(the "RSU Agreement") for use with the Company's 2011 Equity Incentive Plan (the
"Plan"). The RSU Agreement sets forth the standard terms and conditions that
apply to grants of RSUs pursuant to the Plan. The foregoing description is not a
complete summary of the terms of the RSU Agreement and is qualified in its
entirety by the terms of the RSU Agreement, which is attached hereto as Exhibit
10.1 and is incorporated herein by reference.

Item 8.01 Other Events.

On April 25, 2012, the Company issued a press release announcing the
presentation of additional data from its Phase IIb study of eteplirsen for the
treatment of Duchenne muscular dystrophy at the American Academy of Neurology
64th Annual Meeting. A copy of the press release is attached hereto as Exhibit
99.1 and is incorporated herein by reference.